CAT Syllabus - 2021

The Institute of Cost Accountants of India

CAT Syllabus – 2021 1 | P a g e

CAT Syllabus - 2021

Summary of the Course:

CAT COURSE PART-I (160 Hrs)

Paper I : Fundamentals of Financial Accounting

Paper II : Applied Business and Industrial Laws

Paper III : Financial Accounting - 2

Paper IV : Statutory Compliance

Delivery Strategy

Class Room oral coaching

Learning Strategy

Class Room Learning On-line/off-line self paced studies through Online self assessment/study module.

ASSESSMENT STRATEGY

On line/off line periodical self-assessment

Course end examination- Multiple Choice Questions

To be answered on-line

CAT COURSE PART-II (140 Hrs)

Computer Fundamentals by Microsoft and Computerized Accounting- Tally ERP 9.0-– 35 hours

SAP End User Program of 25 hours Cambridge - Generic Skills for Employability – 20 hours eFiling by experts – 20 hours Introduction to Costing Principles &Preparation of Cost Statements- 40 hours 5-days Orientation Programme



CAT COURSE PART-I

Objectives:

To provide an insight into the fundamentals of financial accounting and its principles.

Learning Aims

The Syllabus aims to test the student’s ability to:

Understand and explain the conceptual framework of Accounting

Prepare Accounts for various entities under different situations

Skill set required

Level A: Requiring the skill levels of knowledge and comprehension

CONTENTS

Fundamentals of Financial Accounting-(Accounting Paper I)

1. Process of Accounting

2. Reconciliation Statement

3. Accounting for Depreciation

4. Preparation of Final Accounts

5. Cash and Fund Flow Statements

6. Ratio Analysis

Section A: Fundamentals of Financial Accounting

(A) Process of Accounting:

Basic Accounting Formulas and Accounting Terminologies

Capital and Revenue transactions- capital and revenue expenditures, capital and revenue

receipts

Measurement, Valuation and Accounting estimates

Double entry system, Books of prime entry, Subsidiary Books

Recording of Cash and Bank transactions

Voucher preparations

Preparation of Ledger Accounts

Preparation of Trial Balance- interpretation and usefulness

Rectification of Errors



(B) Reconciliation Statements:

Bank Reconciliation Statement

Receivables / Payables Reconciliation Statement

(C) Accounting for Depreciation:

Methods, computation and Accounting treatment

(D) Preparation of Final Accounts:

of a Profit making concern (for sole proprietorship concern and partnership firm only)

Preparation of Trading Account, Profit & Loss Account and Balance Sheet

Accounting treatment of bad debts, reserve for bad and doubtful debts, provision for discount

on debtors and provision for discount on creditors

of a Non – Profit making concern

Preparation of Receipts and Payments Accounts

Preparation of Income and Expenditure Accounts

Preparation of Balance Sheet

(E) Cash and Fund Flow Statements

(F) Ratio Analysis



Syllabus Structure

Objectives:

To gain basic knowledge in Laws and Ethics to understand the concepts of legal compliance

requirements from entry level executives.

Learning Aims:

The syllabus aims to test the student’s ability to:

Acquire adequate knowledge of the basic concepts of laws

Understand the basic knowledge of legal compliance and requirements

Skill sets required

Level A: Requiring the skill levels of knowledge and comprehension

Note: Subjects related to applicable statutes shall be read with amendments made from time

to time.

Section A : Fundamentals of Applied Commercial Laws 70%

1. Laws of Contracts

2. Laws relating to Sale of Goods

3. Banking and Insurance Laws and operations

4. Partnership Act & Limited Liability Partnership

Section B: Fundamentals of Applied Industrial Laws 30%

5. Factories Act, 1948 & Shop and Establishment Act

6. Payment of Wages Act, 1936 and Minimum Wages Act, 1948

7. The Employees’ State Insurance Act, 1948

8. Provident Fund Act

9. Payment of Bonus Act

10. Payment Gratuity Act

11. Companies Act

12. Ethics



Section A: Fundamentals of Applied Commercial Laws [70 marks]

1. Laws of Contracts:

Essential elements of a contract, offer and acceptance

Void and voidable agreements

Consideration, legality of object and consideration

Capacity of Parties, free consent

Quasi-contracts, contingent contracts, termination or discharge of contracts

2. Laws relating to Sale of Goods:

Definition

Transfer of ownership

Performance of the Contract of Sale

3. Banking and Insurance Laws and operations:

Basics of Banking and Insurance laws and regulations

Concept of working capital and term funds

Banking procedures and negotiable instruments

Rights and liabilities of Parties

Small Payment Banks, Finance Banks and Co- operative Banks

MSME Act

4. (I) Partnership Act:

Nature of Partnership

Rights and Liabilities of Partners

Dissolution of Firms

(II) Limited Liability Partnership:

Features

Difference between Partnership and LLPs

Difference between LLPs and Companies



Section B: Fundamentals of Industrial Laws [30 marks]

5. Factories Act, 1948 & Shop Act:

Objective, Scope

Applicability of Factories Act,1948

6. Payment of Wages Act, 1936 and Minimum Wages Act, 1948:

Objective , Scope

Applicability of Payment of Wages Act, 1936 and Minimum Wages Act, 1948

7. The Employees’ State Insurance Act, 1948:

Objective, scope

Applicability of ESI Act, 1948

8. Provident Fund Act:

Objective, scope

Applicability of PF Act

9. Payment of Bonus Act:

Objective, scope

Applicability of Bonus Act

10. Payment of Gratuity Act:

Objective, scope

Applicability of Gratuity Act, 1948

11. Companies Act

12. Ethics



Objectives: To train the students on Pay Roll Accounting, Store Accounting, Sales Accounting and Asset

Accounting enable them to gain skills in these areas.

SL. No Course Weight age

A Pay Roll Accounting 20%

B Store Accounting 20%

C Sales Accounting 20%

D Asset Accounting 20%

E Accounting for Special Transactions 20%

(A) Pay Roll Accounting:

Concept of Pay Roll Accounting Process of Pay Roll Accounting

Pay/Salary, Gross-earnings, dedications- statutory and non-statutory deductions-responsibility of the employers

Statutory Deductions- EPF/ESI/Income Tax/Professional Tax/other and its accounting. Accounting of Bonus and Gratuity

(B) Store Accounting:

Pricing of purchase of materials Issue of materials from stores. Pricing of returned materials Issue of materials to other formations Issue of materials for disposals

(C) Sales Accounting:

Recognize revenue items at the proper time on the income statement. Account for cash and credit sales. Compute and interpret sales returns and allowances, sales discounts, and bank credit card sales. Manage cash and its importance to the company. Estimate and interpret uncollectible accounts receivable balances. Assess the level of accounts receivable. Develop and explain internal control procedures.

(D) Asset Accounting:

Meaning of Asset Accounting Current Asset Accounting Fixed Asset Accounting Project Accounting



(E) Accounting for Special Transactions:

Bills of Exchange Consignment Joint Venture Sale of goods on approval or return basis



Objectives: To gain understanding and to provide working knowledge of procedures, records and returns under tax laws and companies act. Learning Outcomes On completion of their studies students should be able to:

Know the basic principles underlying direct as well as indirect taxes. Know various records and returns under tax laws. Know statutory compliance under companies act.

(A) Concept of Taxation:

Constitution of India

Taxation under Constitution

Direct and Indirect Taxes

Constitutional Amendment

Taxes to be subsumed under GST

Information on Website

(B) Goods and Services Tax:

Introduction to Goods and Services Tax (GST) Key Concept GST Council Salient Features of GST Benefit of GST Ease of Doing Business Taxes Under GST Central Goods and Services Tax (CGST) State Goods and Services Tax (SGST) Union Territory Goods and Services Tax (UTGST) Integrated Goods and Services Tax (IGST) Registration Threshold for Registration Regular Taxpayer Composition Taxpayer Non-Resident Taxable Person Unique Identification Number Registration Number Format Structure of GSTIN Supply



Time of Supply Value of Supply Place of Supply Concept of Place of Supply Place of supply of goods Place of Supply of Services Input Tax Credit Input Tax Credit Process Negative List of Input Tax Credit Input tax credit utilization under GST Input Tax Credit Reversal Payment of Taxes Electronic Liability Ledger Electronic Credit Ledger Electronic Cash Ledger Unique Identification Number Returns

(C) Customs:

Introduction Scope of Custom Laws Important Definition Functions of Custom Department Taxable event for Import/Export of Goods Different Types of Custom Duty Basic Custom Duty Significance of IGST Anti-Dumping Duty Safeguard Duty Protective Duty Valuation

Transaction Value Convert Transaction value into Indian Currency Self-assessment of Custom Duty Import Procedure Export Procedure Baggage Exemptions Refunds

(D) Income Tax:

Origin and Basic Concept Origin of the Statute and Act in vogue Basic Concepts Income-tax Liability



Assessment Year Previous Year Person Assessee Income Calculation of Income-tax Residential status Income Exempted from Tax Exemptions under the head Salary Exemptions under the head Income from House Property Exemptions under the head Profits and Grains of Business or Profession Exemptions under the head Capital Gains Exemptions under the head Other Income Exemption to EOU/SEZ Miscellaneous Salary Income Income under the head ‘salary’ Elements of Salary Exemptions Valuation of perquisites. Income from House Property Profit and Gains of Business and Profession Capital Gains

Income from Other Sources

Assessments Tax Deduction at Sources (TDS) Returns

(E) Tax Invoice, Credit and Debit Notes:

Invoice under GST Importance of Tax Invoice under GST Contents Contents of Tax Invoice Contents of Bill of Supply Contents of Receipt Voucher Contents of Refund Voucher Contents of Payment Voucher Contents of Revised Tax Invoice Provisions regarding Tax Invoice in special cases given under Rule 54 Provisions of Transportation of Goods without issue of Invoice Interest is Applicable under GST Provisions Pertaining to Collection of Tax and its Indication in Invoice [Secs. 32 and 33] Credit and Debit Notes Basic Features of GST Return Mechanism Matching, Reversal and Reclaim of Input Tax Credit Electronic Liability Ledger Electronic Credit Ledger



Electronic Cash Ledger Types of Assessments Penalties Under GST Audit In GST



Objectives:

The Courses under Part- II will enable the students to have application-oriented learning and enhance their skill sets in managing the functions of entry level accounting and other related areas.

Delivery Strategy:

Class Room Training and hands on Training on Computers

Learning Strategy:

Class Room Learning On-line/off-line self paced studies

ASSESSMENT STRATEGY:

On line periodical self-assessment

Course end on-line assessment.

(A) Computer Fundamentals by Microsoft and Computerized Accounting- Tally ERP 9.0 (35 hours)

Computer Fundamentals by Microsoft

Computer Hardware and Concepts:

(A) Common computer terminology

(B) Types of devices

(C) Computer usage

Operating System Basics:

(D) What is an OS and what does it do?

(E) Manage computer files and folders

(F) Manage computer configuration, Control Panel, OS drivers

Applications Software (Common Application Features):

(G) Common Features and Commands

(H) Formatting

(I) Navigating

(J) Working with multimedia files

Microsoft Word:

(K) Organizing data

(L) Layout



Microsoft Excel:

(M) Spreadsheet Layout

(N) Data Management

Microsoft Power Point:

(O) Inserting content

(P) Slide Management

(Q) Slide Design

Computerized Accounting- Tally ERP 9.0:

(R) Accounting with Tally-ERP 9

(S) Getting Started with GST

(T) Data Management in Tally – ERP 9

(U) Security Management in Tally ERP 9

(B) SAP End User Program - (25hrs)

SAP Overview

ERP Fundamentals

System-wide Concepts

SCM - Logistics & Cloud Applications

Financials

Human Capital Management & SuccessFactors

Analytics & Strategic Planning

SAP Products & Services

(C) Generic Skills for Employability- Cambridge University Press (20 hrs)

Financial Literacy

Communication Skills

Self – Management

Working with Others

Dealing with Customers

Preparing for Employment

Striking Opportunities in the Job Market

(D) E-Filing (20 hours)

Online PAN Application

E- Filling of Return Income Tax

E- Filling of Tax Deducted at Source / Collected at Source (TCS / TDS)

GST (Goods & Service Tax)

E- Filling Duty of – Customs Duty

E- Filing of Return – ESIC



E- Filing of Return – PF

Digital Signature

(E) Introduction to Costing Principles &Preparation of Cost Statements (40 hours)

Cost Data collection, Cost Sheet formats,

Preparation of Cost Sheets (historical cost sheets and estimated cost sheets)

preparation of cost sheets leading to project Accounting/controls)

(F) Five-day Orientation Program

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Documents

CAT Syllabus - 2021